Mahindra Logistics stock: Shift to organised segment should boost revenues

Significant opportunity exists for the company to penetrate the passenger transport segment, dominated by unorganised players

The stock of Mahindra Logistics was up 9 per cent over last month on expectations of higher growth aided by a shift to the organised segment, increasing share of non-Mahindra business and better margins.
 
The non-M&M business (46 per cent of revenue) is expected to grow at 25-30 per cent annually, while the M&M business (54 per cent) should grow at 10-12 per cent over the next three years.
 
Given the strong growth in auto and tractor sales (volumes up about 12 per cent year-to-date), the company has seen a good traction from the supply chain management business